The BLOM Bond Index (BBI), which tracks Lebanese government Eurobonds (excluding coupon payments), declined by 1.7% this week to 19.2 points.
This drop succeeded the massive turnout at the funeral of former Hezbollah leader Hassan Nasrallah and Hashem Safieddine, who led Hezbollah for a week after Nasrallah’s death. Reuters estimated the crowd size to be in the hundreds of thousands. This suggests that Hezbollah’s influence could remain strong despite recent military setbacks and could impact political decisions.
In the U.S., treasury yields fell this week by 25 basis points for 5-year bonds and 21 basis points for 10-year bonds, settling at 4.1% and 4.3%, respectively. The 10-year Treasury yield is trading near its lowest level since early December 2024. Recent economic reports pointed to a slowing economy, prompting markets to increase their pricing in for potential Federal Reserve rate cuts.
For the full report, click on the below link:
Lebanese Bonds React to Nasrallah’s Funeral; U.S. Treasury Yields Reach December 2024 Lows